Inflation is the increase in the price level of goods and services. Inflation can cause the value of money to fall as prices of goods and services rise. Savers need to ensure that their money is protected against inflation.
Protecting savings against inflation is key to protecting long term investment plans. Investing in assets that are likely to increase in value more rapidly than inflation over the longer term can be a key way to address the danger of inflation. For many investors this means investing primarily in equities for the majority of their working lives. However, investing in equities can be risky as the value of equities can go down as well as up. This is why many investors seek to diversify the investments over a range of different asset classes.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested